- Private hospitals led health spending in FY24 with Rs 2.67 lakh crore, 31.91% of total
- Government hospitals received Rs 1.40 lakh crore, accounting for 16.77% of current health expenditure
- Pharmacies were the second-largest spending category at Rs 1.72 lakh crore or 20.60% of CHE
Private hospitals accounted for the largest share of India's current health expenditure (CHE) in FY24, attracting spending of Rs 2.67 lakh crore, nearly twice the Rs 1.40 lakh crore spent on government hospitals, according to the National Health Accounts Estimates for India 2023-24.
Data showed that expenditure on private hospitals stood at Rs 2,67,186 crore, representing 31.91% of total current health expenditure during the year. In comparison, government hospitals accounted for Rs 1,40,431 crore or 16.77% of CHE.
Pharmacies emerged as the second-largest spending category after private hospitals, with expenditure of Rs 1,72,459 crore, contributing 20.60% of total healthcare spending.
Among other healthcare providers, expenditure on government clinics, including primary health centres (PHCs), dispensaries and family planning centres, stood at Rs 77,501 crore, accounting for 9.26% of CHE. Spending on private clinics was Rs 33,092 crore or 3.95% of total expenditure.
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The report also highlighted spending on preventive and support healthcare services. Expenditure on providers of preventive care reached Rs 42,082 crore, contributing 5.03% of CHE, while health system administration and financing agencies accounted for Rs 31,983 crore or 3.82%.
Diagnostic laboratories received Rs 29,289 crore, representing 3.50% of healthcare expenditure, while patient transport and emergency rescue services accounted for Rs 28,839 crore or 3.45%.
Other retailers contributed Rs 5,054 crore, equivalent to 0.60% of CHE, while expenditure on other healthcare providers not classified elsewhere stood at Rs 9,259 crore or 1.11%.
Meanwhile, combined spending on government hospitals and government clinics stood at Rs 2.18 lakh crore.
India's total health expenditure for financial year 2023-24 is estimated to be around Rs 9.52 lakh crore, which is nearly 3.29% of the country's gross domestic product and Rs 6,801 per capita, according to National Health Accounts Estimates for India report released by Ministry of Health and Family Welfare. This expense constitutes current and capital expenditure incurred by both government and private sources.
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